As noted by JPMorgan analysts on October 3, the current geopolitical tensions coupled with the impending presidential election are influencing investors to consider both gold and Bitcoin as reliable safe-haven assets. This shift towards “depreciation transactions” is rooted in several economic conditions. These include escalating geopolitical uncertainties that have intensified since 2022 and persistent worries over inflation. Additionally, significant government deficits in major global economies are further contributing to this trend, alongside diminishing trust in fiat currencies—a concern particularly pronounced in emerging market economies. Such a financial climate enhances the appeal of assets traditionally viewed as more stable, such as gold and Bitcoin, among cautious investors seeking to mitigate risks. By focusing on these dynamics, market participants are strategically positioning their portfolios against potential economic volatility.
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